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Martello Reports Fourth Quarter and Fiscal 2022 Financial Results

Martello to Announce Fourth Quarter and Fiscal 2022 Financial Results Banner
June 28, 2022


Early indicators of Vantage DX momentum with key partnerships positioning Martello as a modern workplace optimization leader

  • Total revenue in the 2022 fiscal year reached $17.5M.
  • Industry-leading gross margins of 91% in the 2022 fiscal year.
  • 98% of revenue was recurring in FY22.
  • Microsoft DEM revenue grew by 40% year over year in FY22.
  • Amendment to Mitel agreement subsequent to Q4 FY22 extends term by 3 years.

OTTAWA, ONJune 28, 2022 /CNW/ – Martello Technologies Group Inc., (“Martello” or the  “Company”) (TSXV: MTLO), a leading developer of enterprise digital experience monitoring (“DEM”) solutions that optimize the modern workplace, today released financial results for the fourth quarter and fiscal year ended March 31, 2022. Martello software provides businesses with actionable insights on the performance and user experience of cloud services such as video conferencing and voice calls, with a focus on Microsoft 365 and Microsoft Teams.

“Though financial performance in FY22 was below our expectations, I am confident in the platform we have created for growth in FY23” said John Proctor, President and CEO of Martello. “The end of the 2022 fiscal year marked an inflection point for Martello towards an absolute focus on becoming a Microsoft Modern Workplace optimization leader. In FY22 we built the product, sales channels and go-to-market strategy to address this market, one which has greater potential than anything Martello has ever done. We are seeing early indicators of momentum around the Vantage DX solution just a few months after launching. This momentum is driven in part by our elite partnership with Microsoft, which is bringing increased co-sell and joint marketing activity, and by our new partnership with Orange Business Services, one of the world’s largest telecom companies. As adoption of Microsoft Teams telephony grows, we see a significant opportunity to become a Microsoft Modern Workplace optimization SaaS leader leveraging our unique expertise in real-time communications and working with Microsoft Operator Connect partners such as Orange Business Services.”

“Martello’s Vantage DX solution provides customers actionable enhancements to their Modern Workplace,” said Jim Clark, Chief Financial Officer of Martello. “Our increasing internal focus on operational excellence will generate the opportunity for our clients and end users to realize optimal Microsoft 365 and Teams value while driving velocity in Martello’s recurring revenue and accelerating positive cashflow from operations.”

Q4 and FY22 Financial Highlights

Martello Technologies Group Inc.


(in Canadian dollars)

Financial Highlights

March 31,

March 31,

March 31,

March 31,

(in 000’s)





(Three months ended)

(twelve months ended)







Cost of Goods Sold





Gross Margin





Gross Margin


90.1 %

89.3 %

90.7 %

92.9 %

Operating Expenses





Loss from operations





Other income/(expense)





Loss from continuing operations before income tax





Income tax recovery





Net loss from continuing operations





Loss from discontinued operations, net of tax



Net loss





Total Comprehensive loss












Adjusted EBITDA (1)






(1) Non-IFRS measure.  See “Non-IFRS Financial Measures”.

  • Revenues in FY22 reached $17.5M, a 4% increase compared to $16.8M in FY21. Q4 FY22 revenues decreased by 5% to $4.3M from $4.5M in the comparative period. On a constant currency basis, FY22 revenue grew by 10% compared to FY21 while Q4 FY22 decreased 1% over the comparative period. Growth in Martello’s Microsoft DEM revenue in FY22 was offset by a decrease in Mitel UC performance analytics subscriptions, an expected decrease in revenue from two sunsetting legacy products and unfavourable currency exchange.

  • Revenue quality was consistently high throughout FY22. Gross margin was 91% in FY22, compared to 93% in FY21.

  • The recurring portion of total revenue was 98% in FY22 (97% in FY21).

  • In Q4 FY22, MRR (monthly recurring revenue) was $1.41M compared to Q4 FY21 MRR of $1.47M, a slight decline attributable to currency exchange, a minor decrease in Mitel UC performance analytics subscriptions, and decreased maintenance and support revenue on legacy products. The exit rate for MRR on a constant currency basis was $1.43 million, representing a 3% year over year increase. MRR is a non-IFRS measure, representing average monthly recurring revenues earned in a fiscal quarter.

  • Microsoft DEM is now Martello’s dominant revenue stream, with 47% of total revenues in FY22 (41% in Q4 FY21), driven in part by the launch of Vantage DX in the third quarter. The remaining portions of total revenue are Mitel UC performance analytics, which represented 41% of total FY22 revenues, and legacy products, which represented 12% of revenues in FY22.

  • Operating expenses of $5.36M in Q4 FY22 declined 10% compared to the $5.96M reported in Q4 FY21. In FY22, total operating expenses were $21.72M, an increase of $1.3M or 6% compared to FY21. The increase is attributable to the reversal of previously implemented wage cuts, headcount increases in R&D and Sales, and spending on Marketing events in FY22.

  • The Q4 FY22 net loss of $2.16M vs a net loss of $1.90M in Q4 FY21 is attributable to a reduction in tax recoveries. The FY22 net loss of $8.22M compared to $6.37M in FY21. The increased net loss is due to the items outlined above plus unfavourable foreign currency conversion.

  • Adjusted EBITDA (a non-IFRS measure) loss in Q4 FY22 decreased to $0.83M, compared to a loss of $0.99M in Q4 FY21, related to share – based compensation. The FY22 adjusted EBITDA loss was $2.86M, compared to a loss of $0.74M in FY21 per items identified above.

  • The Company’s cash and short-term investments balance was $5.02M at March 31, 2022, compared to $8.52M at March 31, 2021. The reduction in cash is primarily attributable to cash consumed in Operations and the buy-out of the warrants on the Vistara loan. Net working capital was $2.27M at March 31, 2022 compared to $4.50M at March 31, 2021.

  • The number of Microsoft users on Martello’s DEM platform increased year over year to 2.76M, compared to 2.67M in Q4 FY21. More than 200,000 of these users are Vantage DX subscribers. The Company is focused on driving Microsoft user growth through sales of Vantage DX. This includes upgrading Microsoft 365 Monitoring customers and converting trials to paid subscriptions.
Vantage DX Progress and Outlook

Just two quarters following the launch of Vantage DX, there are early indicators of momentum behind the Microsoft Modern Workplace optimization SaaS. The number of Vantage DX paid users grew by 200% in Q4 FY22 to reach over 200,000 and in March 2022 there were more than one million users engaged in a trial of Vantage DX. Martello is receiving strong go to market and sales support from Microsoft.

“With Vantage DX, Microsoft’s customers and partners can proactively optimize their Microsoft Teams voice, video and collaboration service delivery, which helps increase Microsoft Teams adoption,” said John Proctor. “We are a highly engaged and fast-moving partner within the Microsoft ecosystem, and we are beginning to see results from this focus and drive to maximize the partnership.”

Conference Call Details

Martello will host a conference call with John Proctor, President & CEO and Jim Clark, CFO at 8:00 AM Eastern Time on Wednesday, June 29, 2022 to discuss the Q4 FY22 financial results.

Canada/USA Toll Free:  1-800-319-4610

International Toll: +1-604-638-5340

Callers should dial in 5 – 10 min prior to the scheduled start time and ask to join the Martello call. An audio recording of the call will be available on June 29, 2022 at

The financial statements, notes and Management Discussion and Analysis (“MD&A”) are available under the Company’s profile on SEDAR at, and on Martello’s website at The financial statements include the wholly-owned subsidiaries of Martello. All amounts are reported in Canadian dollars.

Two institutional investment firms provide research coverage of Martello. The Company does not endorse the research of third-party institutions.

Upcoming Activities

The next issue of Martello’s quarterly Investor Newsletter will be sent to subscribers in July 2022. To join the mailing list, complete the Subscribe form on Martello’s website.

This press release does not constitute an offer of the securities of the Company for sale in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, (the “1933 Act“) as amended, and may not be offered or sold within the United States absent registration or an exemption from registration under the 1933 Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Martello Technologies Group

Martello Technologies Group Inc. (TSXV: MTLO) is a technology company that provides digital experience monitoring (DEM) solutions to optimize the modern workplace. The company’s products provide actionable insight on the performance and user experience of cloud business applications, while giving IT teams and service providers control and visibility of their entire IT infrastructure. Martello’s software products include Vantage DX, which provides Microsoft 365 and Microsoft Teams end user experience monitoring and optimization. Martello is a public company headquartered in Ottawa, Canada with employees in EuropeNorth America and the Asia Pacific region. Learn more at

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and ” includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including the focus on driving Microsoft user growth through sales of Vantage DX, the Company’s focus on becoming a Microsoft Modern Workplace optimization leader, the Company’s internal focus on driving velocity in Martello’s recurring revenue and accelerating positive cashflow from operations.

Forward-looking information is neither a statement of historical fact nor assurance of future performance. Instead, forward-looking information is based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking information relates to the future, such statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking information. Therefore, you should not rely on any of the forward-looking information. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the following:

  • Continued volatility in the capital or credit markets and the uncertainty of additional financing.
  • Our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so.
  • Changes in customer demand.
  • Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment.
  • Delayed purchase timelines and disruptions to customer budgets, as well as Martello’s ability to maintain business continuity as a result of COVID-19.
  • and other risks disclosed in the Company’s filings with Canadian Securities Regulators, including the Company’s annual information form for the year ended March 31, 2021 dated January 7, 2022, which is available on the Company’s profile on SEDAR at

Any forward-looking information provided by the Company in this news release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

For further information: Tracy King, Vice President of Marketing,, 613.410.7636; John Proctor, President & CEO,, 613.271.5989


Martello provides the only end-to-end Microsoft Teams performance monitoring tool that Microsoft recommends to their customers to maximize employee productivity.

Our solution Vantage DX proactively monitors Microsoft 365 and Teams service quality, enabling IT with complete visibility of the user experience to ease troubleshooting of issues before they impact users.

Find out why Martello is Microsoft’s go-to-solution for Microsoft Office 365 Monitoring >>

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